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Bitcoin prices fell at the beginning of December, sparking further fears for the world’s largest cryptocurrency.
What’s happening?
Reuters reported that bitcoin fell 6% to $85,788 in December, although that represented a mild recovery after an earlier 8% drop saw prices hit $83,879.01.
While that is troubling news for cryptocurrency enthusiasts, it’s still more promising than in early November. Around $18,000 in value was lost during the month, representing the biggest drop since May 2021.
It’s even more concerning to some, considering that bitcoin typically receives a boost in December, according to Reuters. Experts have indicated that this could be tied to stocks performing poorly right now, but there are other reasons this might be happening.
“The negativity at the moment seems tied to growing concerns about increased market concentration and questionable sustainability of overall growth in that sector, considering the issues of infrastructure as well as less cooperation in trade globally,” Juan Perez, director of trading at Monex USA in Washington, told Reuters.
Why is bitcoin’s value drop significant?
It’s not just financial sustainability that people are concerned about in terms of bitcoin.
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The traditional cryptocurrency mining process is energy-intensive. A lot of that power is sourced from the grid, which still relies heavily on burning coal, gas, and oil to generate electricity. This results in significant planet-warming pollution.
Some cryptocurrencies, like Celo, aim to be more environmentally friendly and minimize their impact on health and communities, and there are bitcoin hubs that are trying to switch to clean energy.
By reducing the energy required for mining operations or using renewable energy sources, more sustainable cryptocurrencies could cut associated pollution.
That can help slow the rate of rising global temperatures and also translate to fewer health problems linked to poor air quality, such as asthma and other respiratory conditions.
What can I do to invest sustainably?
If you’re going to invest in crypto, make sure to pick a currency that’s good for humans and the planet. Meanwhile, some stocks can be worth your while financially and environmentally.
There are other options if the stock market isn’t for you. If your workplace has a 401K program, consider checking what your money funds. You could even switch to a cleaner bank and get cash back for going green.
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